Termination fees: reps get it wrong

You know the drill. You talk to one customer service representative and she tells you one thing while another rep gives you entirely different information. Consumers Union last month tried out this mystery shopping exercise: Call 12 AT&T Wireless salespeople and ask about the company’s early termination fees.

The result? Two-thirds of those AT&T sales reps got the info wrong. Some told consumers that AT&T pro-rated early termination fees (it doesn’t yet). One said the fee is cut in half after the first year of a two-year contract, while another said the fee declines gradually.

According to Mark Siegel, an AT&T Wireless spokesman, the company continues to charge $175 to any customer who wants to break his service contract with the company.
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Siegel wouldn’t say when the company would announce details of changes to this policy, nor when the changes would be implemented by AT&T. Siegel apologized for the false information provided by the company’s salespeople.

Here’s what the major carriers charge to terminate your contract. AT&T, Verizon and Sprint Nextel have a 30-day trial period in which you can cancel without paying the fees; T-Mobile offers 14 days.

AT&T charges $175.

Sprint Nextel charges $200. The company was planning to move toward a pro rated model this year, but has not released details of that policy, according to DowJones.

T-Mobile charges $200.

Verizon Wireless charges $175 for accounts activated before Nov. 16, 2006; for accounts after that date, the $175 is reduced by $5 for every full month.